It has been a tough past 12 months for everyone. A lot of our plans have been ruined due the ongoing pandemic and we are still not sure when we are expecting better days. We should not let 2021 be a repeat of 2020. The best plan is to move forward and move better.

We are one month down and 11 more to go, although we are probably keeping count on the number of lockdown days we are in. 2021 shouldn’t be another year of standstill, this should be the year to plan.

There is support out there available for the economic environment to soften the blow. The furlough scheme is still available at 80% to help cover wages for non-working staff. The Welsh government has helped with the economic resilience fund. For full details of the grants, click here to see what is available.

Is there something you have been wanting to do for your business, but have held back on doing so? You should write down your goals and set a plan to achieve this. We need to make 2021 a positive stepping stone to achieve the most we can for our business. Is there a sales target you want to hit? Is there software or machine you want to purchase? Writing down what you will need for this is the best way to plan.

You should sort out your goals in short term and long term. What is it that you want to achieve in the next month, or 6 months, or 1 year or 5 years?         Click here for a great template that you can work off to get started.

Set your Goal what do you want to achieve in one years time, 3 years time,

or 5 years time.      WRITE IT DOWN

Then piece together what you need to do in small manageable tasks what you need to do to achieve this goal.   It does not even have to be a goal for the business, but a personal goal that the business can help you materialise.

Watch your costs, time runs away with us so easily, and so do the costs. Make sure you are tracking these. If you need to renew a contract, do so. 

It’s a telephone call, it’s a form. What have you got to lose? But to gain you will.  Don’t be afraid to negotiate even with the large companies.

What you want to say at the end of this year 2021, I not only lived through a pandemic and survived it, but I made something of my year that is 2021.

We have to plan and overcome this pandemic, we have to strive to progress.

If you want help with budgets or cashflow, get in touch with us and we can discuss on 02920 653 995. You can find all our latest information on www.crossaccountingservice.co.uk

The chancellor Kwasi Kwarteng has claimed that he has made the biggest tax cuts in a generation. So, what is in his mini-budget?

National Insurance

With the cost of living on the rise it is paramount that the Government step in to help. The biggest announcement from this mini budget is the reversal of National Insurance levy that was introduced in April 2022 by ex-chancellor Rishi Sunak. The extra 1.25% increase was going to be used to help fund health and social care. With the latest turnaround, the funding for health and social care will now come from general taxation. 

The reversal means an extra £330 per year for nearly 28 million people and will start from 6^th November 2022. National Insurance is a tax paid by employees, employers and the self-employed. Employees pay National Insurance on their wages as well as income tax, employers pay extra NI contributions for staff, and the self-employed pay National Insurance on their profits.

Income Tax

There are also cuts in basic rate of income tax. Currently at 20% for everyone that earns above the personal allowance, from April 2023 this will be down to 19% Government estimates 31 million people will be getting an extra £170 a year in their pay packets.

45% higher rate of income tax abolished for England, Wales, and Northern Ireland taxpayers and a one single higher rate of income tax of 40% from April 2023.

Corporation Tax

Companies will also benefit as the rise in corporation tax has been cancelled. Corporation tax was due to be increased from 19% to 25% in April 2023, however, now this will not go ahead.

Benefits

Rules around the benefit system have also been changed. Benefits can be reduced if people don’t actively search for job commitments. Around 120,000 more people on universal credit to be encouraged to actively seek more work, the over 50’s to be given extra time to work with coaches to help them in the return to work.

Shopping

Overseas visitors will also benefit as VAT-free shopping to be introduced. This will encourage visitors to spend more while in the UK. Planned increases in the duties on beer, cider, wine, and for spirits have also been cancelled.

Stamp Duty

Stamp duty is paid when people buy a property. No stamp duty is paid currently on first £250,000 and for first time buyers, this is increased to £425,000. This is currently for England, we will have to wait and see what the Welsh Government do for us.

Energy

Energy bills was the one that worried most homeowners. There will be a freeze on energy bills which the government claims will reduce inflation by 5%

Total cost for the energy package to be expected around £60bn for the 6 months from October.

Click here to find out all the other information covered in the mini-budget.